Impact of Lenin and Stalin's regimes on the economy

Lenin promised imediate end to war and rapid resolution to land problem. lenin did not rely on empty edicts controlling recources and an alliance with private economic organisations of industrialists

Bolsheviks dreamed of dismantling and destroying the old structures of tsarism and creating a new economic system -

By late 1917 Lenin was articulating a policy, called ‘state capitalism’, that would facilitate economic recovery and serve as a transitional phase before the implementation of socialist policies. The Russian economy would retain many elements of capitalism: money and petty trade would continue, as would markets and privately owned small businesses. Bourgeois experts like accountants, factory managers and technicians would also continue in their roles. The state, however, would acquire control of the major sectors of the economy, particularly heavy industry, mining, banking and finance. Planning and control of these sectors would be managed by Vesenkha, a government department created by Sovnarkom in late 1917. -

Lenin’s call for state capitalism was criticised and opposed by radicals in the Bolshevik party, who demanded more meaningful socialist reforms. But Lenin justified his push for state capitalism by arguing that capitalist development was necessary, in order to build a solid economic foundation for the construction of a socialist economy.

LENIN IN PRAVDA IN APRIL THESES PROMISED SOCIALISATION OF THE ECONOMY

Bolsheviks ruthlessley controlled economic recources of the central areas of russia that they ruled. Policy of war communism could not not expand industry but made sure taht its resources were used as fully as possible. Farmers products were taken by the state on an unprecedented scale

Even thgough LENIN'S regime was communist and not autocratic, there was not a great degree of economic freedom liberalising it.

When recovery had been achieved, much it was faster than earlier periods as the infastructure had already been establishedm. much more radical policy of forced economic growth was put into effect.

TSARS brought pressure from below.

WW1 IMPACT ON ECONOMY

LAND POLICY

IMPACT OF CIVIL WAR

The war caused disease and starvation which killed millions of people. It shattered Russia's already frail economy - industrial production at the end of the war was 1/7th that of 1913 production figures.

The war also led to complaints about War Communism and Bolshevik policies. In 1921 sailors at Krondstadt, who had always been supporters of the bolsheviks, mutinied in protest at conditions. This shocked lenin and was one of the reasons why War Communism was replaced by the New Economic Policy.

POST WAR ECONOMIC DEVELOPMENT. AFTER THE CIVIL WAR

9 million had died during civil war and famine that accomapnied it

There had been a decline industrial workers. by 1919 factory workers were at 76 per cent of the 1917 figure. building workers fell to 66 per cent and railway workers to 63 per cent

industrial population went from went from 3 million in 1918 to 1,240,000 in 1920.